The U.S. budget deficit is projected to be $1.3 trillion in the year ending Sept. 30, down from $1.4 trillion forecast in April, because of curbs on federal spending and increased income-tax collections, the Congressional Budget Office said.

The $2.1 trillion in spending cuts passed by Congress in 2011 won’t curb the growth of entitlements that poses a fiscal-crisis risk in the next 25 years, the Congressional Budget Office said in an annual report on long- term budget projections.

The head of the Congressional Budget Office gave a bipartisan conference committee three choices for cutting the U.S. deficit: increase taxes, make deep cuts in entitlement spending or cut other programs.